Sale of the ultra-deepwater drillship West Polaris in the fourth quarter 2014

Selected key financial data:

Three Months Ended

Dec 31, 2014

Sep 30, 2014

Charter revenues(1)

$179m

$176m

EBITDA(2)

$149m

$146m

Net income

$25m

$ 35m

Earnings per share

$0.27

$0.37

Dividends and Results for the Quarter Ended December 31, 2014

The Board of Directors has declared an increased quarterly cash dividend of $0.42 per share. The dividend will be paid on or about March 27, 2015 to shareholders on record as of March 10, 2015, and the ex-dividend date at the NYSE will be March 6, 2015. This will be the 44th consecutive quarterly dividend declared by the Company.

The Company reported total U.S. GAAP operating revenues on a consolidated basis of $88.7 million, or $0.95 per share, in the fourth quarter of 2014. This number excludes $10.5 million of revenues classified as 'repayment of investments in finance lease', and $80.1 million of charter revenues earned by 100% owned assets classified as 'investment in associate'.

The cash sweep agreement with Frontline had a positive effect of $11.3 million, or $0.12 per share in the fourth quarter. For the full year 2014 a total of $32.7 million cash sweep was recorded and is payable to the Company in March 2015. There was also a $0.2 million profit share in the quarter relating to some of our dry bulk vessels.

Reported net operating income pursuant to U.S. GAAP for the quarter was $29.3 million, or $0.31 per share, and reported net income was $25.1 million, or $0.27 per share. This is after approximately $22.6 million, or $0.24 per share in negative non-cash charges, which includes a negative mark-to-market of $6.3 million related to interest rate hedging instruments, a book loss of $1.4 million on the sale of three older VLCCs, a non-cash amortization of deferred charges of $3.1 million and an impairment of approximately $11.8 million related to the divestment of five feeder-size container vessels in the first quarter of 2015. The negative charges were partly offset by $11.3 million, or $0.12 per share in book gains, which includes a gain of $6.1 million on the sale of West Polaris and a gain of $5.2 million relating to a settlement for the early redelivery of four Handysize dry bulk carriers in 2012.

Ship Finance is a major ship owning company listed on the New York Stock Exchange (NYSE: SFL). Including newbuildings and adjusted for the sale of assets, the Company will have a fleet of 64 vessels, including 19 crude oil tankers (VLCC and Suezmax), two chemical tankers, 14 dry bulk carriers, 17 container vessels, two car carriers, six offshore supply vessels, two jack-up drilling rigs and two ultra-deepwater semi-submersible drilling rigs. The fleet is one of the largest in the world and most of the vessels are employed on long-term charters. More information can be found on the Company's website: www.shipfinance.org

Cautionary Statement Regarding Forward Looking Statements

This press release may contain forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including Ship Finance management's examination of historical operating trends. Although Ship Finance believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, Ship Finance cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions.

Important factors that, in the Company's view, could cause actual results to differ materially from those discussed in this presentation include the strength of world economies and currencies, general market conditions including fluctuations in charter hire rates and vessel values, changes in demand in the tanker market as a result of changes in OPEC's petroleum production levels and worldwide oil consumption and storage, changes in the Company's operating expenses including bunker prices, dry-docking and insurance costs, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, and other important factors described from time to time in the reports filed by the Company with the United States Securities and Exchange Commission.